Overhaulin'

im upside down on my car loan but am really looking for a new car.?

i have a 3 year old car but am upside down on my loan about 10,000 dollars but am looking at at a new car for about $18,000 but i may only get 6,000dollar for it.whats the best way to go on this or if anyone knows any car loan companies that give a very low interest rate?

Public Comments

1. Bad idea. The economy is a mess and unless you can come up with a huge down payment to get rid of the negative equity and have a credit score of 720-750 or higher, you will be hard-pressed to find a low interest rate. Cars are a depreciating asset. You will be even more upside down the moment you trade the old one in.
2. If you are $10,000 upside down the only way to get out is CASH. you won't need the whole 10,000 in cash but probably $6-7,000 might work dpending on the new car you want. For instance, a Kia Sedona has a $5000 rebate on it, so if you have 3,000 cash they could break you out of your trade. I know 5,000 plus 3,000 = 8,000 and your 10,000 upside down. But the dealer has about 3000 between cost and list price so by SHOWING (meaning allowing you on paper $5,000 for your trade,) that 2,000 comes from the 3, 000 between cost and list leaving the dealer with a 1,000 dollar deal. (profit)
3. The last thing you need is a new car and another loan. You think you're upside down now, wait until you roll your negative equity into another loan. Bad idea. Keep the car you have.
4. You are about $4K upside down ($10K - $6K), which means your new car would be costing you about $22K ($18K + $4K). Lenders don't like to let you borrow more money than the car is worth, but dealers can often find ways to "hide" the negative equity. If not, you would have to make a cash down payment. Here's more details: http://www.firstcarguide.com/finance/can-i-buy-a-car-if-i-am-upside-down-on-another-loan.html .